Myntra on path to profit with brand tie-ups
Online fashion retailer Myntra said on Tuesday that it achieved operational profitability in the last quarter of 2023, attributing it to factors like an expanding customer base, premiumization and collaboration with domestic and global brands, as well as advancements in technological integration.
While Myntra did not offer detailed earnings before interest, taxes, depreciation, and amortization (ebitda) figures, in FY23, the Walmart-backed firm posted 25% rise in operating revenue from ₹4,375 crore. However. its losses widened to ₹782 crore from ₹598 crore a year earlier.
Myntra posted 33% growth with its monthly average users rising to around 60 million in 2023 from 45 million in 2021. The firm outpaced the online fashion market's growth in the latter half of the calendar year, nearly doubling its gross merchandise value, or GMV, compared to the market's during the festive season.
Myntra plans to diversify its product portfolio catering to various demographics, increasing its market share in non-apparel categories, and pursuing premiumization in fashion, by tying up with global beauty as well as direct-toconsumer (D2C) brands, to expand its reach in non-metropolitan areas.
According to the company, technological advancements have played a crucial role in enhancing user engagement, with nearly 2 million monthly users exploring its new features, such as Myfashiongpt, Maya and AI Stylist.
Established in 2007 by Mukesh Bansal, Vineet Saxena, and Ashutosh Lawania, the company boasts a collection of 6,000-plus fashion and lifesnow, tyle brands, including the likes of H&M, Levi's, U.S. Polo Assn, Tommy Hilfiger, Louis Philippe, MANGO, Forever 21, and Marks & Spencer. The platform delivers to over 19,000 pin codes nationwide.
Over the past year, Myntra’s brand assortment and catalogue size have expanded by more than 50%, driven by a continuous influx of new customers. Myntra added around 50 international brands last year, building on its existing portfolio of 400 companies. Among its various segments, the home category saw a 50% increase in GMV in February from a year ago, indicating shifting consumer preferences. This is in line with sustained and the rapid growth of India’s fashion and lifestyle e-commerce market, which is projected to reach approximately $35 billion by 2028.
"This, coupled with India’s progressing journey in fashion, which continues to evolve and scale at pace, serves as a strong base for the positive prospects of an industry where Myntra’s role will be pivotal," the company said in a statement.
Myntra posted 33% growth with
its monthly average users rising to 60 mn in 2023 from 45 mn
in 2021